The document discusses several key economic principles: 1) Economics seeks to analyze production, distribution, and consumption of goods and services given the scarcity of resources. Microeconomics examines individual units while macroeconomics examines aggregates. 2) The production possibilities curve illustrates scarcity and opportunity costs graphically, showing the tradeoffs between two goods an economy can produce. 3) Absolute advantage refers to being able to produce more of a good using the same inputs. Comparative advantage means having a lower opportunity cost of production. Countries can gain from trade based on comparative advantage.

1. Basic Principles of Economics

14. Production Possibilities Curve

17. Example